Daily Current Affairs MCQ: 2nd February 2025 - UPSC MCQ

To determine the correctness of each statement:

1. Statement 1: Correct. The Union Budget for FY26 does indeed set a fiscal deficit target of 4.4% of GDP. This is part of the government's broader fiscal consolidation strategy to gradually reduce the deficit from 4.8% in the previous fiscal year to 4.4% in FY26.

2. Statement 2: Correct. One of the significant tax reforms introduced in the budget is the relief provided to the middle class, where no income tax is levied on total income up to ₹12 lakh per annum. This measure is aimed at increasing disposable income and stimulating consumption.

3. Statement 3: Correct. The budget includes a proposal to raise the Foreign Direct Investment (FDI) limit in the insurance sector from 74% to 100%. This reform is intended to attract more foreign investment by allowing foreign companies to invest the entire premium collected within India.

All three statements are correct, thus the correct answer is Option D. Each statement accurately reflects the budgetary reforms and fiscal measures outlined in the Union Budget for FY26, justifying the selection of Option D as the correct answer.

1. Fiscal Deficit Target for FY26 - 4.4% of GDP: This pair is correctly matched. The Union Budget for FY26 targets a fiscal deficit of 4.4% of GDP, as mentioned in both summaries.

2. Inland Mangrove Recognized as Biodiversity Heritage Site - Guneri, Gujarat: This pair is correctly matched. The inland mangrove in Guneri village, located in Kutch, Gujarat, is indeed recognized as a Biodiversity Heritage Site, highlighting its ecological importance.

3. FDI Limit in Insurance - Raised to 100% for companies investing the entire premium in India: This pair is correctly matched. The budget introduced reforms increasing the FDI limit in insurance to 100%, provided the entire premium is invested in India.

4. Tax Benefits for Self-Occupied Properties - Claims allowed on three houses: This pair is incorrectly matched. The budget allows tax benefits for self-occupied properties on two houses, not three.

Thus, three pairs are correctly matched: pairs 1, 2, and 3.

Statement 1 is correct. South Georgia Island is indeed a part of the British overseas territory known as South Georgia and the South Sandwich Islands. This territory is located in the South Atlantic Ocean and is under British administration.

Statement 2 is incorrect. While South Georgia Island experiences a sub-Antarctic climate characterized by cold, wet, and windy conditions, it is not covered by tropical vegetation. Instead, it has sparse vegetation primarily consisting of resilient grasses and tundra plants, with most of the island covered by perpetual snow.

Statement 3 is correct. The island is renowned for its rich biodiversity, being home to millions of seabirds, such as king penguins, albatrosses, and petrels, as well as large populations of seals, including fur seals and elephant seals. This makes South Georgia Island an ecologically significant area.

Thus, only statements 1 and 3 are correct, making Option C the correct answer.

1. South Georgia Island — Located in the North Atlantic Ocean

- Incorrect. South Georgia Island is located in the South Atlantic Ocean, not the North Atlantic Ocean.

2. Mount Paget — Highest peak on South Georgia Island

- Correct. Mount Paget is indeed the highest peak on South Georgia Island, standing at 2,935 meters (9,629 feet).

3. Sakkarakottai Bird Sanctuary — Located in Kerala

- Incorrect. Sakkarakottai Bird Sanctuary is located in Tamil Nadu, not Kerala. It is part of a unique mosaic wetland ecosystem near the Gulf of Mannar.

4. Khecheopalri Lake — Sacred lake in Sikkim

- Correct. Khecheopalri Lake is a sacred lake located in Sikkim, revered by both Buddhists and Hindus, and is part of the mystical Demazong valley.

Thus, pairs 2 and 4 are correctly matched, making a total of two correctly matched pairs.

1. Statement 1 is correct. The central government has indeed announced that the debt-GDP ratio will become the primary fiscal anchor starting from the financial year 2026-27. This marks a strategic shift in fiscal policy aimed at ensuring fiscal sustainability and better management of public finances.

2. Statement 2 is incorrect. The government aims to reduce the debt-GDP ratio to 50% by March 31, 2031, not 40%. This target is set as a more realistic goal aligning with fiscal sustainability efforts.

3. Statement 3 is correct. The shift from fiscal deficit targets to the debt-GDP ratio is aligned with global best practices, focusing on long-term fiscal health rather than short-term fiscal deficit metrics. This approach is intended to provide greater transparency and flexibility in fiscal management.

Thus, the correct statements are 1 and 3, making Option C: 1 and 3 Only the correct answer.

1. Debt-GDP Ratio: Correctly matched. The debt-GDP ratio indeed measures a country's national debt in relation to its GDP and serves as an indicator of fiscal health, capturing both past and present borrowing trends.

2. ASMITA Initiative: Incorrectly matched. The ASMITA Initiative is not about digital textbooks but aims to develop 22,000 books in Indian languages over five years to integrate these languages into the education system. The Bharatiya Bhasha Pustak Scheme provides digital textbooks.

3. Onchocerciasis: Correctly matched. Onchocerciasis is a parasitic disease caused by Onchocerca volvulus, commonly known as river blindness, and it is transmitted via the bite of an infected blackfly.

4. Fiscal Deficit: Incorrectly matched. Fiscal deficit refers to the difference between the government's total expenditure and its total revenue (excluding borrowing), not a measure of total debt as a percentage of GDP.

Thus, two pairs (Pairs 1 and 3) are correctly matched.

Statement-I is accurate as per the information provided in the source material about the central government's decision to use the debt-GDP ratio as the primary fiscal anchor starting from the financial year 2026-27.
Statement-II is also correct based on the details from the source material regarding the introduction of the Bharatiya Bhasha Pustak Scheme in the Union Budget for 2025-26. However, Statement-II does not provide an explanation or direct correlation to Statement-I. Both statements are valid individually, but they do not necessarily relate or explain one another. Therefore, the correct answer is option (b).

The National Geospatial Mission aims to modernize land records and improve urban planning. By utilizing geospatial technologies, this initiative seeks to develop foundational geospatial infrastructure and data, with a focus on resolving land disputes, optimizing land use, and benefiting both government agencies and private sector stakeholders. This mission is crucial for enhancing efficiency and transparency in land reforms, which are essential for effective urban development and land management.

The National Geospatial Mission is an initiative introduced in the fiscal year 2025-26 budget with the goal of enhancing infrastructure through advanced geospatial technologies. Let's analyze each statement:

Statement 1 is correct. The mission indeed aims to modernize land records and improve urban planning. This is a key focus area of the mission as outlined in the budget announcement, as it seeks to develop foundational geospatial infrastructure and data to optimize land use and resolve land disputes.

Statement 2 is correct. The mission is designed to utilize geospatial technologies to benefit both government agencies and private sector stakeholders. It enhances transparency and efficiency in land reforms, which is expected to increase demand for services from geospatial and drone companies.

Statement 3 is incorrect. This statement inaccurately combines aspects of fiscal policy with the mission's objectives. The National Geospatial Mission does not focus on fiscal conservatism or strategies related to reducing corporate incentives and tax concessions. These are broader economic issues discussed in the context of the budget, not specific to the geospatial mission.

Therefore, the correct answer is Option B: 1 and 2 Only.

1. Geospatial Data: Correctly matched. This refers to information tied to specific locations on the Earth's surface, which is indeed essential for effective planning and resource management. The National Geospatial Mission aims to utilize this data to enhance infrastructure and land management.

2. Fiscal Conservatism: Incorrectly matched. Fiscal conservatism in the context of the 2025-26 Budget refers to the government's approach of fiscal restraint, leading to spending cuts, particularly in capital-intensive sectors, rather than increasing spending.

3. Declining Consumption Demand: Correctly matched. The Economic Survey 2024-25 highlights that rising income disparity is leading to subdued demand as wealth is concentrated among large corporations, affecting the purchasing power of lower- and middle-income groups.

4. Corporate Behavior: Incorrectly matched. Despite high corporate profits, there has not been an increase in capital investments or job creation; many companies are retaining cash due to uncertainties in future demand.

Pairs 1 and 3 are correctly matched.